British same-day delivery firm Shutl is planning to launch in the USA next year after being boostedby extra investment from UPS and GeoPost.
The start-up firm confirmed today that it has received $2 million additional investment fromthe UPS Strategic Enterprise Fund, a UPS investment arm, and existing investors, including GeoPostand equity fund Hummingbird Ventures. This leaves UPS and GeoPost each with 6 per cent in thecompany.
Marketing manager Guy Westlake told CEP-Research that the company has so far raised around£3m ($4.75m) in total and would seek further investment in future to help fund the growth of thebusiness.
Shutl said it will use the new investment to expand its engineering team, accelerate theacquisition of new retail partners, and prepare to launch in the US in early 2013. The investmentdemonstrates the interest of UPS in exploring different options for helping retailers serve onlinecustomers, it pointed out.
UPS itself is strongly targeting consumer deliveries as a key growth sector both in the USAand in Europe, where it last year acquired Belgian-based B2C parcels firm Kiala. UPS Europe VPStrategy Joe Mozzali, who is responsible for the Kiala integration, and GeoPost Executive VicePresident John Acton will join the Shutl board as observers.
“Since launching in 2010, we’ve focused on providing a service that blows away shoppers’expectations,” commented founder and CEO Tom Allason. “We’ve spent this last year taking Shutlnational across the UK, now we are ready for the US, a market that we estimate will be worth around$26bn by 2016.”
Shutl, which has not disclosed which major US cities are top of its list, is now looking tocontact US retailers and couriers to set up the new business.
The British company uses innovative IT systems to connect online and physical retailers withlocal same-day courier companies, thus enabling very fast deliveries within as little as 90 minutesof purchase or within a chosen one-hour time window on the same day. It covers about 70 per cent ofthe UK at present and aims for 90 per cent coverage by year-end.
The fast-growing company does not disclose volumes but expects “seven-figure” revenues thisyear, implying it will generate revenues of more than £1 million. Key customers include Argos,Aurora Fashions, Karen Millen, Maplin and Style Passport.
